Strategy Inc Boosts Cash to $2.19B, Pauses BTC Buys

Strategy Inc. has elevated its cash reserves to $2.19 billion following a $748 million raise from stock sales, according to a recent regulatory filing. The company, under billionaire Michael Saylor, held its bitcoin position steady at 671,268 BTC from December 15 to 21, marking a pause in purchases after earlier acquisitions.

The funds originated from selling approximately 4.54 million shares of Class A common stock under an at-the-market equity program, with over $41 billion in remaining capacity. This liquidity supports dividend payments, debt servicing, and volatility management. Established on December 1 at $1.44 billion, the reserve now provides greater financial flexibility.

Meanwhile, MSCI is considering excluding crypto-treasury companies like Strategy Inc. from major indexes if digital assets exceed 50% of holdings, viewing them as investment funds. Strategy Inc. opposes this as arbitrary and discriminatory, arguing it operates as a technology business. Analysts warn of potential $2.8 billion to $9 billion outflows for the firm alone. Bitcoin trades near $90,000, with Citigroup adjusting its price target on Strategy Inc. stock to $325.

Strategy Inc. increased its U.S. dollar reserves by $748 million last week, bringing total cash liquidity to $2.19 billion. This boost came from sales under the company's at-the-market equity offering program.

The firm sold roughly 4.54 million shares of its Class A common stock, yielding $747.8 million in net proceeds after commissions. No preferred stock was issued, though multiple classes remain available.

As of December 21, Strategy Inc. holds more than $41 billion in remaining capacity across its common and preferred stock ATM programs. The reserve, first disclosed on December 1 at $1.44 billion, aims to cover preferred dividend payments, debt obligations, and short-term volatility.

Historical Context of Funding

Strategy Inc. has traditionally used equity and debt issuance to finance bitcoin acquisitions. Capital raises support long-term accumulation while ensuring liquidity through market cycles.

The active engagement with capital markets via at-the-market offerings highlights the company's strategic approach to maintaining financial health.

Strategy Inc. maintained its bitcoin holdings at 671,268 BTC during the December 15 to 21 period, with no new purchases recorded. This represents the largest corporate bitcoin position, acquired at an average price of $74,972 per coin, including fees.

The aggregate purchase price stands at roughly $50.33 billion. The pause follows a significant bitcoin acquisition earlier in December.

Michael Saylor shared a Bitcoin tracker on Twitter, hinting at potential future buying. This update underscores the company's commitment to transparency via investor dashboards and SEC filings.

Implications of the Pause

The absence of accumulation suggests a tactical decision rather than a shift in long-term strategy. Management has not detailed deployment plans for the increased cash.

• Holdings unchanged at 671,268 BTC
• Average acquisition cost: $74,972 per coin
• Total BTC value based on $90,000 market price

MSCI is evaluating a rule change that could exclude companies like Strategy Inc. from major global equity indexes. The proposal targets firms where digital assets exceed 50% of holdings, classifying them as investment funds rather than operating businesses.

Under this, "Digital Asset Treasury" companies would face removal to maintain benchmark integrity and reduce volatility. Strategy Inc., as the top corporate bitcoin holder, is central to the discussion, with other similar firms potentially impacted.

Strategy Inc. has pushed back, deeming the 50% threshold arbitrary, discriminatory, and unworkable. The company positions itself as an operating technology business focused on digital credit and financial infrastructure, not a passive crypto entity.

Industry and Analyst Reactions

Analysts criticize the proposal, noting it could prompt index funds to sell billions in shares. Estimates indicate $2.8 billion to $9 billion in outflows for Strategy Inc. alone, and $10 billion to $15 billion sector-wide.

MSCI plans a decision by January 15, 2026, with possible February implementation. The ruling may influence market dynamics and bitcoin prices in the months ahead.

Citigroup recently lowered its price target on Strategy Inc. stock to $325 per share from $485, while retaining a buy rating. Bitcoin currently trades near $90,000.

The enhanced cash position strengthens Strategy Inc.'s near-term flexibility, potentially positioning it for future bitcoin buys or operational needs. The MSCI debate adds uncertainty, but the company's rebuttal emphasizes its business model.

Overall, these developments reflect Strategy Inc.'s ongoing balance between liquidity management and cryptocurrency strategy. As market conditions evolve, the firm's approach will likely continue adapting to regulatory and economic shifts.

Conclusion

Strategy Inc.'s reserve build-up and purchase pause highlight prudent financial planning amid a dynamic crypto landscape. The resolution of MSCI's proposal could significantly affect investor sentiment and sector stability, underscoring the interplay between traditional finance and digital assets.